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    Question

    Which of the following statements regarding the

    classification of financial markets is/are correct? Ā Ā  1. Debt markets are primarily concerned with long-term investment instruments like bonds. Ā Ā  2. Equity markets facilitate the buying and selling of company shares. Ā Ā  3. Derivative markets involve trading securities based on the value of underlying assets like commodities, currencies, or stocks. Ā Ā  4. Money markets deal with instruments with more than one year of maturity.
    A 1 and 2 only Correct Answer Incorrect Answer
    B 2 and 3 only Correct Answer Incorrect Answer
    C 1, 2, and 3 only Correct Answer Incorrect Answer
    D 1, 2, and 4 only Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Money markets deal with instruments that have maturities of less than one year, not more than one year.

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